% Judge Rules for Patients in Medicare Lawsuit Medicare Resource Center
Judge Rules for Patients in Medicare ' Observation Status' Lawsuit
Beneficiaries can appeal admission status that cost them thousands in health care costs
Getty Images Some Medicare beneficiaries may get reimbursed for thousands of dollars in nursing home charges they paid because of the way they were classified during a hospital stay, under a recent federal court ruling. Under current Medicare policy, if an enrollee who has been in the hospital needs to go to a skilled nursing facility for more care, Medicare will pay for those services only if the patient has spent at least three days in the hospital.
thumb_upLike (11)
commentReply (1)
shareShare
visibility315 views
thumb_up11 likes
comment
1 replies
L
Lily Watson 1 minutes ago
(Officials at the Centers for Medicare and Medicaid Services have suspended that three-day rule .) B...
S
Sebastian Silva Member
access_time
4 minutes ago
Thursday, 08 May 2025
(Officials at the Centers for Medicare and Medicaid Services have suspended that three-day rule .) But sometimes, Medicare patients who go into the hospital and think they have been admitted as inpatients are instead changed to what Medicare calls observation status, meaning they are considered outpatients even if they remain in the hospital for days. "Unfortunately, the financial impact for Medicare beneficiaries who spend time in observation can be burdensome and significant." Outpatients can lose out two ways.
thumb_upLike (37)
commentReply (0)
thumb_up37 likes
H
Hannah Kim Member
access_time
6 minutes ago
Thursday, 08 May 2025
In the hospital, they are subject to Medicare Part B rules for outpatients and so are responsible for 20 percent of the bills for their hospital care. That 20 percent can be more than they would pay if they were admitted as a regular patient and classified under Medicare Part A, which covers inpatient hospital services.
thumb_upLike (12)
commentReply (0)
thumb_up12 likes
A
Andrew Wilson Member
access_time
4 minutes ago
Thursday, 08 May 2025
And when they move from the hospital to a skilled nursing facility, they and so have to pay out of pocket. The difference in charges can amount to thousands of dollars.
thumb_upLike (11)
commentReply (2)
thumb_up11 likes
comment
2 replies
D
Daniel Kumar 1 minutes ago
And though Medicare allows enrollees to appeal if they are denied many services or charged for thing...
C
Chloe Santos 3 minutes ago
Last week, in a ruling in that suit, U.S. District Judge Michael Shea of Connecticut said patients c...
M
Mia Anderson Member
access_time
5 minutes ago
Thursday, 08 May 2025
And though Medicare allows enrollees to appeal if they are denied many services or charged for things they don't believe they should be, Medicare has not allowed patients to appeal their status in a hospital, saying such decisions are for doctors to make based on their medical judgment. Nearly a decade ago, a group of Medicare beneficiaries sued the U.S. Department of Health and Human Services in what became a nationwide class action.
thumb_upLike (48)
commentReply (2)
thumb_up48 likes
comment
2 replies
C
Chloe Santos 1 minutes ago
Last week, in a ruling in that suit, U.S. District Judge Michael Shea of Connecticut said patients c...
L
Luna Park 2 minutes ago
The U.S. Justice Department has until May 25 to appeal the decision....
N
Natalie Lopez Member
access_time
18 minutes ago
Thursday, 08 May 2025
Last week, in a ruling in that suit, U.S. District Judge Michael Shea of Connecticut said patients can appeal their hospital status if their doctor admitted them as a regular inpatient but the hospital later classified them as under observation.
thumb_upLike (1)
commentReply (0)
thumb_up1 likes
S
Sophie Martin Member
access_time
28 minutes ago
Thursday, 08 May 2025
The U.S. Justice Department has until May 25 to appeal the decision.
thumb_upLike (40)
commentReply (1)
thumb_up40 likes
comment
1 replies
L
Liam Wilson 16 minutes ago
Shea's decision applies to all traditional Medicare beneficiaries whose status was switched since Ja...
D
David Cohen Member
access_time
16 minutes ago
Thursday, 08 May 2025
Shea's decision applies to all traditional Medicare beneficiaries whose status was switched since Jan. 1, 2009, who spent at least three days in the hospital and who were enrolled in Medicare's Part A hospital benefit.
thumb_upLike (20)
commentReply (0)
thumb_up20 likes
A
Ava White Moderator
access_time
9 minutes ago
Thursday, 08 May 2025
If they win their appeal, most hospital expenses and any nursing home bills they paid will be reimbursed, as long as they satisfied any deductibles and copays. "The ruling acknowledges that Medicare patients are in a very vulnerable position when they are hospitalized and particularly when they require care at a skilled nursing facility after hospitalization,” said Alice Bers, litigation director for the Center for Medicare Advocacy, which serves as lead counsel for the class.
thumb_upLike (20)
commentReply (3)
thumb_up20 likes
comment
3 replies
E
Emma Wilson 9 minutes ago
Congress passed a law in 2019 that requires hospitals to tell patients what status they are being tr...
E
Evelyn Zhang 9 minutes ago
Those bills have languished in Congress so far. AARP has strongly supported the measures....
Congress passed a law in 2019 that requires hospitals to tell patients what status they are being treated under, but advocates say more is needed. Bills introduced in the U.S. House of Representatives and Senate would allow the time patients spend in the hospital under observation status to be counted toward the three-day hospital stay Medicare requires before it will pay for care in a skilled nursing facility.
thumb_upLike (27)
commentReply (0)
thumb_up27 likes
C
Charlotte Lee Member
access_time
55 minutes ago
Thursday, 08 May 2025
Those bills have languished in Congress so far. AARP has strongly supported the measures.
thumb_upLike (38)
commentReply (0)
thumb_up38 likes
C
Christopher Lee Member
access_time
60 minutes ago
Thursday, 08 May 2025
“Unfortunately, the financial impact for Medicare beneficiaries who spend time in observation can be burdensome and significant,” David Certner, AARP's legislative counsel and legislative policy director, said in letters of support to the authors of the measures.
More on Medicare
Cancel You are leaving AARP.org and going to the website of our trusted provider.
thumb_upLike (6)
commentReply (2)
thumb_up6 likes
comment
2 replies
A
Alexander Wang 56 minutes ago
The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more a...
C
Chloe Santos 15 minutes ago
You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to ...
L
Lucas Martinez Moderator
access_time
26 minutes ago
Thursday, 08 May 2025
The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed.
thumb_upLike (14)
commentReply (0)
thumb_up14 likes
J
Joseph Kim Member
access_time
42 minutes ago
Thursday, 08 May 2025
You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime.
thumb_upLike (44)
commentReply (2)
thumb_up44 likes
comment
2 replies
C
Charlotte Lee 26 minutes ago
You will be asked to register or log in. Cancel Offer Details Disclosures
<...
C
Chloe Santos 7 minutes ago
Once you confirm that subscription, you will regularly receive communications related to AARP volunt...
E
Ella Rodriguez Member
access_time
30 minutes ago
Thursday, 08 May 2025
You will be asked to register or log in. Cancel Offer Details Disclosures
Close In the next 24 hours, you will receive an email to confirm your subscription to receive emails related to AARP volunteering.
thumb_upLike (35)
commentReply (2)
thumb_up35 likes
comment
2 replies
D
Daniel Kumar 5 minutes ago
Once you confirm that subscription, you will regularly receive communications related to AARP volunt...
A
Alexander Wang 19 minutes ago
Please enable Javascript in your browser and try again....
S
Sebastian Silva Member
access_time
48 minutes ago
Thursday, 08 May 2025
Once you confirm that subscription, you will regularly receive communications related to AARP volunteering. In the meantime, please feel free to search for ways to make a difference in your community at Javascript must be enabled to use this site.
thumb_upLike (26)
commentReply (1)
thumb_up26 likes
comment
1 replies
N
Natalie Lopez 31 minutes ago
Please enable Javascript in your browser and try again....
V
Victoria Lopez Member
access_time
68 minutes ago
Thursday, 08 May 2025
Please enable Javascript in your browser and try again.
thumb_upLike (31)
commentReply (2)
thumb_up31 likes
comment
2 replies
Z
Zoe Mueller 62 minutes ago
Judge Rules for Patients in Medicare Lawsuit Medicare Resource Center
Judge Rules for Pat...
R
Ryan Garcia 59 minutes ago
(Officials at the Centers for Medicare and Medicaid Services have suspended that three-day rule .) B...